To: HONORABLE MAYOR AND From: Jose Obregon

CITY COUNCIL

SUBJECT: REPORT ON OPEN PURCHASE ORDERS FOR SUPPLIES, MATERIALS, EQUIPMENT AND SERVICES FOR FY 2003-2004 #2

RECOMMENDATION

Approval of award of open purchase orders for supplies, materials, equipment and services for FY 2003-2004 #2 and authorization for the Director of General Services to execute the purchase orders.

BACKGROUND

This standard memorandum is provided as a cover sheet to an attached list of requests received by the General Services Department/Purchasing Division for open purchase orders. This list indicates the most current requests submitted by various City departments for the establishment of open purchase orders or an increase in the amount of an existing open purchase order for supplies, materials, equipment and services for Fiscal Year 2003-2004. Open purchase orders are used when the amount or nature of the items or services cannot be predicted before they are needed, or when it is necessary that the place from which the items or services are purchased is strategically located.

Pursuant to Sections 4.12.135, 4.12.146 and 4.13.040 of the Municipal Code, competitive quotes or proposals are obtained whenever practicable on all items or services with a payment amount exceeding Five Thousand Dollars ($5,000). Unless otherwise noted, most advantageous price quotations were used to establish all open purchase orders on the attached list. Formal bidding is not required to establish open purchase orders regardless of the total dollar amount; however, General Services/Purchasing does bid some items when feasible. Formal bids are noted on the attachment when applicable.

The attachment may also include open purchase orders for contracts subject to the Living Wage Policy adopted by the Council on November 17, 1998. The policy pertains to contracts exceeding $20,000 and for designated service categories. The Policy also requires a review of the employee work environment (Third Tier Review). The attachment will indicate each purchase that is subject to the Living Wage and any additional information used by staff in making the recommendation.

ANALYSIS

All open purchase orders, which are expected to have an accumulative total of purchases exceeding $100,000 during the fiscal year, are presented for Council approval. A list of the new or increased open purchase orders is attached. The attached list includes brief explanatory comments on the items and services.

COORDINATION

Each purchase order request on the attached list has been coordinated with the City Attorney’s Office; City Manager’s Budget Office and the requesting City department.

PUBLIC OUTREACH

All purchase order requests, which require solicitation of quotations or bids, are advertised on the City’s Internet site.

CEQA

See attachment for CEQA determinations

JOSE OBREGON

Director, General Services Department

ITEMS/SERVICES DEPARTMENT	RECOMMENDED VENDOR/ LOCATION	REQUESTED AWARD		PRIOR BALANCE		SOURCE OF FUNDING AND BUDGET PAGE
Fire hydrants for the Department of General Services	Mueller Co. Decator, IL	$200,000				Stores Fund - 551 2003-2004 Proposed Operating Budget, Page 277
Establish an open purchase order for the period July 1, 2003 through June 30, 2004. This open purchase order provides for the purchase of Mueller fire hydrants for warehouse stock. This requirement is a sole source from the manufacturer. Hydrant model is a Public Works standard for the City. OEA: N/A CEQA: Environmental clearance would be given at the point of approval for the development, by the City Planning Department. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.”
Forensic testing for the Police Department	Central Medical Lab, Inc. San Jose, CA	$210,000				General Fund – 001 2003-2004 Proposed Operating Budget, Page 496
Establish an open service order for the period July 1, 2003 through June 30, 2004. This open service order provides for forensic testing of blood, urine and breath for driving under the influence and required felony arrests. Exercising the first of two one-year options to renew. OEA: N/A CEQA: Not a project. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.”
Aqueous ferrous chloride for the Department of Transportation	Kemiron Pacific, Inc. Fontana, CA	$750,000				Sewer Service & Use Charge - 541 2003-2004 Proposed Operating Budget, Page 598
Establish an open purchase order for the period July 1, 2003 through June 30, 2004. This open purchase order provides for the purchase of ferrous chloride for sewer odor control. This requirement was competitively quoted; Kemiron Pacific, Inc. submitted the low quote. OEA: N/A CEQA: Exempt, PP03-05-151 Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.”
ITEMS/SERVICES DEPARTMENT	RECOMMENDED VENDOR/ LOCATION		REQUESTED AWARD		PRIOR BALANCE		SOURCE OF FUNDING AND BUDGET PAGE
Herbicides, insecticides and fertilizer for the Department of General Services/Warehouse	Target Specialty Products San Jose, CA		$320,000				Stores Fund - 551 2003-2004 Proposed Operating Budget, Page 277
Establish an open purchase order for the period July 1, 2003 through June 30, 2004 for the purchase of herbicides, insecticides and fertilizer for warehouse inventory stock. Exercising first of two one-year options to renew. OEA: N/A CEQA: Not a project. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.”
Street light and traffic signal equipment for the Department of Transportation	Electrical Distributors San Jose, CA		$300,000				General Fund –001 2003-2004 Proposed Operating Budget, Page 598
Establish an open purchase order for the period July 1, 2003 through June 30, 2004 for the purchase of street light and traffic signal equipment as required. This requirement was competitively quoted; Electrical Distributors submitted the only quote. OEA: N/A CEQA: Not a project. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.”

ITEMS/SERVICES DEPARTMENT	RECOMMENDED VENDOR/ LOCATION	REQUESTED AWARD	PRIOR BALANCE	SOURCE OF FUNDING AND BUDGET PAGE
Tree trimming and removal for the Department of General Services and Parks, Recreation and Neighborhood Services	Trugreen Landcare San Jose, CA	$253,500		Construction Conveyance Tax Funds-377, 378, 380, 381, 382, 384, 385, 386, 388, 389, 390 2003-2004 Proposed Capital Budget, various pages General Fund –001 2002-2003 Proposed Operating Budget, Page 416
Establish open service orders for the period July 1, 2003 through June 30, 2004 for tree work in neighborhood parks as required. Exercising second of three one-year options to renew. OEA: #6366,6405: Living Wage Policy with Prevailing Wage higher. CEQA: Not a project. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.”
Fuel for the Department of General Services	Valley Oil Company Mt. View, CA Coast Oil Company San Jose, CA Western States Oil Company San Jose, CA	$1,840,000 $660,000 $575,000		Vehicle Maintenance and Operations Fund – 552 2003-2004 Proposed Operating Budget, Page 277
Establish open purchase orders for the period July 1, 2003 through June 30, 2004 for the purchase of fuel and petroleum products not stocked by Fleet Maintenance. OEA:N/A CEQA: Not a project. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.”

ITEMS/SERVICES DEPARTMENT	RECOMMENDED VENDOR/ LOCATION	REQUESTED AWARD	PRIOR BALANCE	SOURCE OF FUNDING AND BUDGET PAGE
Electrical supplies for the Department of General Services	Electrical Distributors San Jose, CA	$200,000		General Fund – 001 2003-2004 Proposed Operating Budget, Page 277
Establish an open purchase order for the period July 1, 2003 through June 30, 2004 for the purchase of electrical parts and supplies as required. Exercising second of five one-year options to renew. OEA:N/A CEQA: Not a project. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.”
Service and repairs for the Department of General Services	Pro Door and Glass San Jose, CA	$150,000		General Fund – 001 2003-2004 Proposed Operating Budget, Page 277
Establish an open service order for the period July 1, 2003 through June 30, 2004 for labor, material and equipment necessary to provide service and repairs to overhead doors located at various City buildings and fire stations. Exercising first of four one-year options to renew. OEA: #6298, Living Wage Policy with Prevailing Wage is higher. CEQA: Not a project. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.”
Traffic signal and street light poles for the Department of Transportation	Jam Services, Inc. Livermore, CA	$105,000		General Fund – 001 2003-2004 Proposed Operating Budget, Page 598 Building & Construction Tax Fund – 429 2003-2004 Proposed Capital Budget, Page 628
Establish an open purchase order for the period July 1, 2003 through June 30, 3004 for the purchase of traffic signal and streetlight poles and to include miscellaneous signal and light parts and supplies as required. Exercising final of two one-year options to renew. OEA: N/A CEQA: Not a project. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.”

ITEMS/SERVICES DEPARTMENT	RECOMMENDED VENDOR/ LOCATION	REQUESTED AWARD	PRIOR BALANCE	SOURCE OF FUNDING AND BUDGET PAGE
VHS video cassettes and DVDs for the Library Department	Baker and Taylor Entertainment Pittsburgh, PA Distribution Video and Audio Clearwater, FL	$600,000 $150,000		Library Benefit Assessment Fund –412 Library Construction/Conveyance Tax Fund – 393 2003-2004 Proposed Capital Budget Page 153
Establish open purchase orders for the period July 1, 2003 through June 30, 2004 for the purchase and pre-processing of VHS video cassettes and DVDs. Exercising first of two one-year options to renew with Baker and Taylor as the primary vendor and Distribution Video as the secondary vendor. OEA: N/A CEQA: Not a project. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.”
Video cassette and CD’s for the Library Department	Baker and Taylor Entertainment Pittsburgh, PA	$250,000		Library Benefit Assessment Fund –412 Library Construction/Conveyance Tax Fund – 393 2003-2004 Proposed Capital Budget Page 153
Establish an open purchase order for the period July 1, 2003 through June 30, 2004 for the purchase and pre-processing of music CDs. Exercising first of two one-year options to renew with this primary vendor. OEA: N/A CEQA: Not a project. Cost Implication: General Principles #2, “We must focus on protecting our vital core city services.”
Purchase of books for the Library Department	Baker and Taylor Inc. Charlotte, GA